Fri, 02 Oct 2020 | BUSINESS SALE
Travis Perkins has sold retailer Tile Giant to Leeds-based investment group Coverings. The sale forms part of Travis Perkins’ strategic move to simplify its group offering and focus on its trade customers. Coverings Ltd, led by Andrew Thirkill and Adrian Hinchliffe, will acquire a 100 per cent stake in Tile Giant.
Tile Giant was initially acquired by Travis Perkins in 2007. Since then, the tile retailer has grown from 29 stores to 82, with turnover exceeding £50 million. Following the sale, Tile Giant will continue to operate autonomously, pursuing its individual growth strategy with its leadership team and MD James Heese remaining in place.
Andrew Thirkill of Coverings said: "These have been turbulent times for the tile industry, but we firmly believe in what Tile Giant has created with Travis Perkins, with its core proposition of delivering high quality, commercially competitive tiles and accessories to the UK retail market.”
"This investment safeguards the future for Tile Giant, and supports the industry to grow as a whole. Home improvement retailers have seen a strong return to business post lockdown, with sales buoyant as homeowners look to reinvest within their properties."
Tile Giant Managing Director James Heese said: "I would like to thank Travis Perkins Plc for their guidance and unwavering support throughout the successful transformation of the Tile Giant business.”
"Coverings Ltd. recognise that they have acquired a fantastic business with significant growth potential. This is a new and exciting chapter for Tile Giant and we’re delighted to be working with Coverings Ltd. to accelerate our growth over the coming years."
Coverings was advised by Roger Esler of Dow Schofield Watts and Dan McCormack of Lupton Fawcett on the deal. Esler said: “Deals with commercial merit are still getting done where there is pragmatism on all sides.”
"The economic recovery is taking hold and there is growing optimism for the UK, despite the headwinds. The Coverings team has a robust long term vision for Tile Giant as an independent, specialist business and we are delighted to have advised them on this strategic acquisition.”
Dan McCormack said: “We are delighted to have supported Coverings on the transaction. I’m sure the resilience shown by the team to get the deal done in spite of the tough economic climate we are all trying to navigate through at the moment will stand them in good stead and help them fulfil the obvious potential for growth that Tile Giant has.”
In its most recent financial reports, for the year ended December 31 2018, Tile Giant reported turnover of £51.1 million and gross profit of £23 million. However, it recorded total losses for the year of £7.4 million, compared to a £673,000 loss the year prior. The company’s net assets were at the time valued at £4.2 million, down from £11.3 million in 2017.
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